World News

See the Numbers of Bank Owned by Nigerians in Liberia; Liberia’s VP Highlights Nigerian Ownership in Local Banking

Published by Tope Fakinlede on September 11th, 2024.

See the Numbers of Bank Owned by Nigerians in Liberia; Liberia’s VP Highlights Nigerian Ownership in Local Banking

Liberia’s Vice President, Jeremiah Koung, recently noted that Nigerian investors now own approximately half of Liberia’s commercial banks. This statement was made during the 17th Annual Banking & Finance Conference held by the Chartered Institute of Bankers of Nigeria (CIBN) in Abuja on Tuesday.

Addressing a gathering of banking experts and officials, Koung praised the significant impact of Nigerian banks on Liberia’s financial landscape. He acknowledged that Nigerian investment has intensified market competition, improved efficiency, and expanded credit availability for the private sector.

Koung stated, “We appreciate and commend the expansion of Nigerian-owned banks in Liberia. Their presence is crucial in fostering competition and enhancing efficiency within our banking sector. Currently, four out of eight commercial banks in Liberia are Nigerian-owned, demonstrating continued Nigerian interest in our market. Our government remains open and welcoming to further investments.”

He also highlighted Liberia’s readiness for additional investments from Nigerian banks, underlining their role in job creation and economic growth. Furthermore, Koung discussed Liberia’s ambitions to integrate into the West African Monetary Zone and the Economic Community of West African States (ECOWAS), aiming for a unified currency system.

“The Central Bank of Liberia is developing a new monetary policy framework to align with regional integration goals. Achieving this requires collective economic responsibility from all member states to manage debt and stabilize exchange rates,” Koung explained.

Additionally, Koung pointed out the need for more investment in Liberia’s banking sector. He noted that the country’s sole development bank, Liberia Bank for Development and Investment (LBDI), does not have sufficient capital for the nation’s economic transformation plans. This gap has led Liberia to depend on institutions like the African Development Bank and the World Bank for financing major projects.

In closing, Koung expressed hope that the Abuja conference would lead to new policies benefiting both Nigerian and Liberian banking sectors and foster increased collaboration in trade, investment, and financial services.

For context, there are currently nine commercial banks in Liberia. The four Nigerian-owned banks are Ecobank Liberia Limited, United Bank for Africa Liberia Limited, Access Bank Liberia, and Guaranty Trust Bank Liberia. The other five are the Liberia Bank for Development & Investment, International Bank Liberia Limited, Global Bank Liberia Limited, Sapelle International Bank Liberia Limited, and Afriland First Bank Liberia Limited.